Executive Summary,
Today becoming a multinational company has its own demands and complications. Becoming multinational means entering new markets and entering a new market especially in another country is a challenge with so many barriers, such as cultural values, consumers’ preferences, and other issues. One of the essential necessities to overcome these barriers is an adapted supply chain, which can not be accomplished without having adequate knowledge and understanding of the new market.
So in this study the challenges related to the design of a new supply chain in a new market will be identified. Here the factors such as IBV and RBV which are involved in designing and setting up a supply chain in a new market will be explained. In addition, the reason why such actions must be taken would be enlighten. The difficulties, challenges, and peculiarities would be explored and the strategies that could be used to overcome these challenges would be identified.
The first priority in creation of a supply chain is the understanding the different aspects of the market, moreover if it is a new market. Factors such as culture, laws, institutions and governmental regulations, segmentations and competitors are not ignorable.
As a company is analyzed and the internal points of weakness and strength are identified, the external opportunities and threats also will be exposed.
So if a company has decided to enter any new market should take all these factors into consideration, if it’s necessary to improve it’s quality to meet the consumer’s expectations, then must improve it. If there are any specific laws in the new market then they must adapt to it, in other words they must become competitive to survive in the new market.
